Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a total operating revenue of HKD 32.49 billion in 2023, a decrease of 14% year-on-year, and a net profit attributable to shareholders of HKD 4.43 billion, down 4% year-on-year [2][8] - The proportion of operational and financial income rose to 76%, while the impairment in the green environmental protection sector negatively impacted profitability [2] - The company is expected to see a significant improvement in free cash flow in 2024, with a projected turnaround to positive cash flow [2][8] Summary by Relevant Sections Financial Performance - In 2023, the company reported a total revenue of HKD 32,495 million, down 14% year-on-year, and a net profit of HKD 4,429 million, down 4% year-on-year [2] - The operational and financial income accounted for 76% of total revenue, an increase of 11 percentage points year-on-year [2] - The company’s asset-liability ratio decreased to 65.37%, down 1.79 percentage points [2][8] Cash Flow and Capital Expenditure - The company’s operating cash flow for 2023 was approximately HKD 7.5 billion, with capital expenditures around HKD 7.8 billion, indicating a significant narrowing of the cash flow gap [2] - Free cash flow is expected to turn positive in 2024, supported by a decrease in capital expenditures and improved operational income [2][8] Profitability and Valuation - The report adjusts the net profit forecasts for 2024 and 2025 to HKD 4.468 billion and HKD 4.564 billion, respectively, with a projected net profit of HKD 4.697 billion for 2026 [2] - The company’s P/E ratio is projected to remain around 4 times for the next few years, indicating potential for valuation recovery [2][8]
2023年业绩公告点评：收入结构持续优化，自由现金流转正在即